Vivi Co., Ltd.: Correction of Previous Accounting Errors

On April 3, Weiwei Co., Ltd. issued an announcement stating that on April 3, 2026, the company received from the Jiangsu Office of the China Securities Regulatory Commission (hereinafter referred to as “Jiangsu CSRC”), the “Administrative Regulatory Measures Decision Letter” (No. 32 [2026]) (hereinafter referred to as the “Decision Letter”). The specific contents are hereby announced as follows:

The specific contents of the “Decision Letter” are:

“Upon investigation, for certain grain and oil trading business revenue recognition during 2022 to 2024, Weiwei Food and Beverage Co., Ltd. (hereinafter referred to as the company) applied the gross method and the net method inappropriately. This does not comply with the provisions of Article 34 of the “Enterprise Accounting Standards No. 14 — Revenue,” resulting in inaccurate disclosure of the company’s operating revenue and operating costs in the company’s Q1 report, semi-annual report, and Q3 report for 2022, 2023, and 2024. The related conduct violates the provisions of Article 1, Paragraph 1 of Article 3 of the “Measures for the Administration of Information Disclosure of Listed Companies” (CSRC Order No. 182) (hereinafter referred to as the “Information Disclosure Measures”). The chairman of the board Ren Dong, the general manager Zhao Huikang, and the chief financial officer Zhao Changlei failed to perform their duties diligently and responsibly and violated the provisions of Article 4 of the “Information Disclosure Measures,” bearing primary responsibility for the above-mentioned violations by the company.

Pursuant to Article 52 of the “Information Disclosure Measures,” my office has decided to take an administrative regulatory measure of ordering rectification against the company, to take an administrative regulatory measure of issuing a warning letter against Ren Dong, Zhao Huikang, and Zhao Changlei, and to record this in the integrity file of the securities and futures market. You should attach great importance to the above issues, take effective measures to carry out rectification in a practical manner, strengthen your study of securities-related laws and regulations, improve your financial accounting level and awareness of standardized operations, and prevent such violations from occurring again. You shall submit a written rectification report to my office within 10 working days from the date of receipt of this Decision Letter.”

On the same day, Weiwei Co., Ltd. issued an announcement regarding the correction of prior accounting errors. The announcement shows that, for the financial statements for the first three quarters of 2022, 2023, and 2024, due to the company’s inability to accurately distinguish whether the company’s role in certain transactions was that of the primary obligor or the agent, there were judgment deviations regarding whether the net method or the gross method should be used to account for certain businesses. In order to execute the relevant provisions of the “Enterprise Accounting Standards” more rigorously, the company made more stringent judgments regarding the substance of the transactions for the related businesses. Based on the principle of prudence, for businesses in which the company acted as the primary obligor, the company accounts for such transactions using the gross method, and for businesses in which the company acted as the agent, the company accounts for such transactions using the net method. On April 3, 2026, the company convened the 12th meeting of the ninth session of the board of directors, which reviewed and approved the “Proposal on Correcting Prior Accounting Errors,” and made retrospective adjustments to the financial statements for the first three quarters of 2022, 2023, and 2024.

The content of this correction of prior accounting errors involves adjusting the operating revenue and operating costs in the company’s Q1 report, interim report, and Q3 report for 2022 to 2024. Accordingly, the company decreased operating revenue and operating costs for Q1 2022 by 117,461,080.27 yuan, increased operating revenue and operating costs for the interim period of 2022 by 31,360,493.78 yuan, decreased operating revenue and operating costs for Q3 2022 by 105,644,114.14 yuan, decreased operating revenue and operating costs for Q1 2023 by 128,915,889.33 yuan, decreased operating revenue and operating costs for the interim period of 2023 by 247,004,028.63 yuan, decreased operating revenue and operating costs for Q3 2023 by 448,238,498.78 yuan, decreased operating revenue and operating costs for Q1 2024 by 126,056,810.02 yuan, decreased operating revenue and operating costs for the interim period of 2024 by 71,911,622.40 yuan, and increased operating revenue and operating costs for Q3 2024 by 33,705,545.95 yuan.

(Company announcement)

(Editor: Wang Can, Lin Chen)

Keywords:

                                                            beverage
                                                            Weiwei Co., Ltd.